I-3 - Taxation Act

Section 752.0.10.10.2 Disposition versions

2020-09-24

752.0.10.10.2. For the purposes of this chapter, money or a negotiable instrument transferred to a qualified donee is deemed to be property that is the subject of a gift, in respect of an individual’s death, made to the qualified donee, if the death occurs after 31 December 2015, the transfer is made as a consequence of the death, and the transfer is

(a)  a transfer—other than a transfer the amount of which is not included in computing the income of the individual or the individual’s succession for a taxation year but would have been included, but for section 430, in computing the income of the individual or the individual’s succession for a taxation year if the transfer had been made to the individual’s legal representative for the benefit of the individual’s succession—made

i.  solely because of the obligations under a life insurance policy under which, immediately before the individual’s death, the individual’s life was insured and the individual’s consent would have been required to change the recipient of the transfer, and

ii.  from an insurer to a person that is the qualified donee and that was, immediately before the individual’s death, neither a policyholder under the policy nor an assignee of the individual’s interest under the policy; or

(b)  a transfer made

i.  solely because of the donee’s right as a beneficiary under an arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier)

(1)  that is a registered retirement savings plan or registered retirement income fund or that was, immediately before the death, a tax-free savings account, and

(2)  under which the individual was, immediately before the individual’s death, the annuitant or holder, and

ii.  from the arrangement to the qualified donee.

2003, c. 2, s. 219; 2017, c. 29, s. 142; 2020, c. 16, s. 105.

2017-12-07

752.0.10.10.2. For the purposes of this chapter, money or a negotiable instrument transferred to a qualified donee is deemed to be property that is the subject of a gift, in respect of an individual’s death, made to the qualified donee, if the death occurs after 31 December 2015, the transfer is made as a consequence of the death, and the transfer is

(a)  a transfer—other than a transfer the amount of which is not included in computing the income of the individual or the individual’s succession for a taxation year but would have been included, but for section 430, in computing the income of the individual or the individual’s succession for a taxation year if the transfer had been made to the individual’s legal representative for the benefit of the individual’s succession—made

i.  solely because of the obligations under a life insurance policy under which, immediately before the individual’s death, the individual’s life was insured and the individual’s consent would have been required to change the recipient of the transfer, and

ii.  from an insurer to a person that is the qualified donee and that was, immediately before the individual’s death, neither a policyholder under the policy nor an assignee of the individual’s interest under the policy; or

(b)  a transfer made

i.  solely because of the donee’s right or interest as a beneficiary under an arrangement (other than an arrangement of which a licensed annuities provider is the issuer or carrier)

(1)  that is a registered retirement savings plan or registered retirement income fund or that was, immediately before the death, a tax-free savings account, and

(2)  under which the individual was, immediately before the individual’s death, the annuitant or holder, and

ii.  from the arrangement to the qualified donee.

2003, c. 2, s. 219; 2017, c. 29, s. 142.

2006-03-01

752.0.10.10.2. Section 752.0.10.10.3 applies to an individual in respect of a life insurance policy where

(a)  the policy is a life insurance policy under which, immediately before the individual’s death, the individual’s life was insured;

(b)  a transfer of money, or a transfer by means of a negotiable instrument, is made by reason of the individual’s death and solely because of the obligations under the policy, from an insurer to a qualified donee, other than a transfer the amount of which is not included in computing the income of the individual or the individual’s succession for any taxation year but would have been included, but for section 430, in computing the income of the individual or the individual’s succession for a taxation year if the transfer had been made to the individual’s legal representative for the benefit of the individual’s succession;

(c)  immediately before the individual’s death, the individual’s consent would have been required to change the recipient of the transfer described in paragraph b and the donee was neither a policyholder under the policy, nor an assignee of the individual’s interest under the policy; and

(d)  the transfer occurs within the 36-month period that begins at the time of the death of the individual or, where written application to extend the period has been made to the Minister by the individual’s legal representative, within such longer period as the Minister considers reasonable in the circumstances.

2003, c. 2, s. 219.